Victor, Khumo and Sethunya are partners in a printing firm. The parties have agreed that the day-to-day business of the firm will be left to Sethunya but that she would not have authority to buy more than P10,000 worth of goods on credit. When a paper merchant, Kebonye, visits the firm, Sethunya tells him that she intends to sell some books and stationery ‘for her own account’. Kebonye is impressed by Sethunya and supplies P10,000 worth of paper and stationery to the firm on favourable credit terms. Payment is now due but the firm does not have sufficient funds to pay any of the money owed.Required:Advise all the parties concerned as to their rights and obligations. (10 marks)
